Big U.S. Banks Give $22 Billion Under Mortgage Relief Deal
Five U.S. banks have provided about $22 billion in mortgage relief to customers under a deal to settle borrowers’ accusations over foreclosures, a report by the settlement’s monitor said on Monday.
The report said that Bank of America Corp, which owes the most, improved in delivering first-lien mortgage modifications to customers, trailing only JPMorgan Chase & Co through September.
Bank of America provided $889.2 million in first-lien modifications that reduced loan balances for consumers, a turnaround from August when the bank had completed none. JPMorgan Chase & Co’s total was $903.1 million in modifications, the most of the five banks.
Monday’s report by Joseph Smith, the former North Carolina Banking Commissioner who is serving as the settlement’s monitor, said the five banks together have completed about $22 billion in customer relief, up from $10.6 billion in August.
Smith said in an interview that he was “encouraged” and that February’s settlement between five banks and federal and state officials had “made significant progress.” But he cautioned that no banks have met their obligations until their numbers are reviewed and credited.